Theme 4

Question 1

Number of parties to a contract:

Answer 1

1) There have to be at least two parties to a contract.

2) South African law does not recognise a unilateral promise or declaration as binding.

3) One cannot contract with oneself unless acting in two different capacities

Question 2

Multiplicity OF PARTIES:

Answer 2

1) When a contract involves more than two parties, the obligations and rights each party must be carefully considered.

2) There might be several co-debtors and co-creditors concerning each obligation created by the contract.

3) This means that if a contract has four obligations, there will be four co-debtors and four co-creditors in terms of the contract.

Question 3

WHY THIS IMPORTANT?

Answer 3

1) When multiple parties to a contract are involved, it becomes important to determine —

2) The share of liability of each such co-debtor and
3) The share of entitlement of each co-creditor

Question 3

Types of Liability and Entitlement

Answer 3

1) Simple joint liability and entitlement (simple co-creditorship)

2) Collective joint liability and entitlement (common co-debtorship).

3) Joint and several liability or entitlement (joint and several co-debtorship).